TOKYO- Chinese stocks made brisk gains on Wednesday, extending their stimulus-fueled rally to a second day, even as equities in the rest of the region struggled and crude oil retreated from a multi-week high.

The dollar dipped to a fresh one-month low versus the euro and a 2 1/2-year trough to sterling after weak US macroeconomic data overnight boosted the case for a second super-sized interest rate cut at the Federal Reserve’s next meeting. Gold renewed an all-time peak.

Mainland Chinese blue chips advanced 2.4 percent  as of 0511 GMT, following a 4.3 percent  jump in the prior session. Hong Kong’s Hang Seng climbed 2 percent , adding to Tuesday’s 4.1 percent  surge.

The strong start for Chinese stocks briefly invigorated other regional indexes, but those gains soon fizzled, with Australia’s benchmark last flat and South Korea’s Kospi declining 0.1 percent .

MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.9 percent  higher.

Japan’s Nikkei shook off early weakness to rise 0.4 percent , buoyed mainly by a stabilization in the yen exchange rate and Wall Street’s rise to new record highs overnight.

S&P 500 futures pointed 0.14 percent  lower, however.

Pan-European STOXX 50 futures sank 0.4 percent .

The People’s Bank of China followed its announcement of wide-ranging policy easing on Tuesday with a cut to medium-term lending rates to banks on Wednesday. Beijing’s broad-based stimulus – the biggest since the pandemic – also includes steps to boost China’s stock market and support for the ailing property sector.

“The debate remains intense on whether there are legs to this rally, though the desk is seeing investors opting to buy/short cover first and ask questions later,” UBS analysts wrote in a note to clients.

China’s yuan strengthened to a fresh 16-month high, briefly crossing the key 7-per-dollar level in offshore trading, before retreating to be flat at 7.0126 per dollar.

The yen was steady at 143.23 per dollar after earlier flipping between moderate gains and losses.

Overall, the dollar stayed on the back foot. The euro added 0.14 percent  to $1.11945 after earlier pushing as far as $1.1199 for the first time since Aug. 26.